Precious metals (Gold, Silver etc) hitting new highs.


I can think of reasoning for and against your argument, and surely both will be in play: It’s arguable that all the recent bubbles were caused by excess liquidity, and the current one (.gov debt) seems to follow. The difference now is that the liquidity is in the hands of public institutions and their select group of private bedfellows. Paddy doesn’t have a washer, and he’s not going to any time soon. Charles H Smith speculates that he doesn’t matter; most of the wealth is owned by the top 20%, and the man on food stamps was becoming increasingly irrelevant anyway. Still, the gamble is likely to be much less leveraged among the dwindling monied classes. The others cannot come to the table if they are not given a float to play with. But with demand destruction regularly rearing it’s ugly head now, there are enough price collapses to throw the sheeple off the scent of the megatrend


someone should tell Dave about the record highs


Time at last to sell silver - Eric Janszen -> … post195945 [subscription required]

One thing I have learned from iTulip, they’ve had some good calls over the years, if these guys are jumping off the silver band wagon, consider doing likewise…


Can’t figure out where we are in this , greed / delusions ish I think. Physical is impossible to get and I think the last mania blowoff will be when only physical is traded…possibly over the summer.

Some time this year it will crash, that is my instinctive feeling anyway. Bull trap somewhere along the line too.

If I had physical I would lock in some profit at this time coz the lads on iTulip will tell you ‘nobody ever lost money taking a profit’ and get ready to dump the rest, honest. I would, were I clever, even sell an option to someone to buy a lump my physical this time next year at THEN market minus 10%, should be easy to cover that if they exercise it :smiley:


Possible (severe?) correction in silver on the way. Buy the dip. There’s a long way to run in this bull market.


the only thing increasing in supply at the moment is fiat currency. Its the uS$ thats in a massive bubble not gold/silver


With what does one purchase metals ?? Cowry Shell Currency is on a comeback is it ??


The silver ramp up looks like a classic speculative bubble. Some PMs are dangerous as they are easily manipulated by large investors/hedge funds…not enough ‘liquidity’. Sure I wish I invested previously but I think it is too late now, like anything that shoots up so quickly it can shoot down quickly too (too many ‘we buy your gold’ signs, even in Asia now!). This ramp up in the cost of silver will also accelerate it’s replacement by other metals in some technology applications. You are at the whim of the big boys when they start to cash out. There are more stable investments like Asian currencies or bonds.


I admit it looks awfully like that chart everyone Googles but “it’s different this time”. The collapse of the worlds reserve currency has never happened before. Gold is very rare and therefore too precious to trade with but if you can get your hands on physical silver then you’re made in the years to come. Fruit, Veg, Livestock and Real Estate will all be available for various weights. Look at all the distractions this weekend, Tornados, Weddings, Blokes with beards, THE SNOOKER and thedollar index hitting 72ish. The Greeks might partially default next week, meanwhile every dirty trick is being pulled on silver. Last week margins have been raised twice on the COMEX and if you go through a broker then it can be threefold. Last night on the thinly traded Sunday night Asian market the stops were totally run.
Max Keiser sums it up nicely (but rudely and funnily)
9/11 crybabies and paper bugs, “Sell silver buy dollars.”
Posted on May 2, 2011 by maxkeiser| 8 Comments
The bloodlust is running thick in the loins of armchair warriors and paper bugs in America now that a bearded guy was defrosted in Pakistan and tossed in the ocean. USA! USA! USA! This manic high will last about 48 hours after which time it’s back to the same old lower lows for the dollar and higher highs for PM’s. To help pay for food, use all that testosterone and jerk off into a paper cup and cash out at the sperm bank. … /#comments


I bought a load of physical over the weekend. If it crashes i’ll short it, keep the physical and make fiat money shorting it, the safest bet i think.
The only reason i can see it crashing is when interest rates are raised and the financial crises is over, so by shorting it then i should be safe stacking up digital money, until then the whole system could collapse…Or perhaps im watching to much Keiser :slight_smile:


This chart speaks volumes…


That chart says “Gold is under appreciated in the modern economy” to goldbugs, and “gold is useless in the modern world” to everyone else.


It says “We’re fucked” to me.

If people see gold as a true store of value, then it’s been fucked by all the derivative shit swamping it.

If people see fiat currency as a the problem then the difference between Pre-Bretton Woods ('48) and Post Bretton Woods ('81) makes a lie of that.

If fiat currencies are not a store of wealth and gold isn’t a store of wealth, then what’s a store of wealth in a “drowning-in-derivatives” world?


Thanks for the graph.
Dramatic really.


Erm, what happened between 1948 and 1981? And after 1981?

So you go through history and you pick all the peaks and you say “these are normal” and then you use dollar prices to value assets and you only use figures from the US, 'cos it’s the biggest, right?


Full report from the Erste group here


That graph looks pretty meaningless to me. The value of all gold in the world is something like €8 trillion, that excludes the stuff that hasn’t been dug up and mining/exploration companies. It sounds like those guys just added up all the derivatives in the world to try and deliberately distort the picture of gold.


A quick google gives plenty more data points


Flicked through the report - lots of nonsense sprinkled with half-truths and distortions of facts. If an EA had produced such a bullish report on Irish property, people who be spitting and foaming at the mouth in rage at how a vested interest is talking up an asset class!


Cheers, didnt even look at it myself, just thought I’d search for it an post it for posterity. Not a gold bug either, but that chart did strike me when I saw it yesterday on another website, thought it was worthy of discussion